Answered

Get detailed and accurate responses to your questions on IDNLearn.com. Join our community to receive prompt, thorough responses from knowledgeable experts.

On January 2 Kelly company performed $800 worth of services for a client. The client paid $100 immediately, but promised to pay the balance next month. The journal entry to record this transaction in Calley company's books would include a _____ to the cash account; a _____ to the accounts receivable account and a _____ to the service revenue account.

Sagot :

Buchinnamani208idn

Answer:

$100, $700, $800

Explanation:

Calley Journal entries would include:

Debiting $100 to the cash account

Debit the $700 to the receivables account

Credit $800 to the revenue account

This follows the double entry rule that a credit in one account must correspond to at least one debit in another account.

We debit all asset accounts(receivables,cash) when increased and credit all liabilities account when increased. We credit all income account(revenue) when increased and debit all expenses account when increased.

Parrainidn

Answer:

Date                 Account Title                                         Debit             Credit

Jan, 2               Cash                                                       $100

                         Accounts Receivable                           $700

                        Service revenue                                                        $800

$100 will be debited to Cash to show that $100 was received. The rest of the bill will go to the Accounts Receivables to shows that it is still owed. Then finally the entire $800 will go to Service revenue to show that services were performed for a client up to $800 worth.

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.